UK publisher Mastertronic has signed a debt repayment agreement with creditors to help it stay in business. In a statement issued yesterday to Develop, Mastertronic CEO Andy Payne said that the company had worked out a deal with creditors that will see it repay 50 percent of its debt over the next three years and four months.
"It will be at least 50p in the pound for all creditors whether they voted for or against. We have a plan that spans three years four months to do that. The number could increase if assets which have been discussed are sold in the meantime. Discussions are on going on that front so want to be a tad careful. Ditto shareholders will need to decide what they do, obviously I will take the company forward but others will hopefully see their futures elsewhere and we can put the company in line with a more collective/co-operative model."
"We will be independent, supported by our bank and will 100 per cent focus on delivering for developers and gamers. We are very much open for business and looking forward to making things happen."
At the end of July, the company was forced to apply for a CVA (company voluntary arrangement) to avoid being issued a winding up order when some creditors began talking about calling in their debt. As part of that process 40 percent of the company's staff were laid off, and the company's Cambridgeshire, England headquarters was closed.